Significant Decline in Wall Street Bitcoin Miners’ Stocks Amid Bitcoin Price Drop
Bitcoin mining stocks on Wall Street have experienced significant declines as Bitcoin’s price fell below $90,000. Major companies such as Cipher Mining and Bitdeer reported widening net losses, leading to sharp declines in their stock prices. Investors remain cautious, focusing on the volatility of Bitcoin prices amidst increasing competition within the industry.
This week, shares of major Bitcoin mining firms in Wall Street experienced significant declines as Bitcoin’s price slipped below the crucial $90,000 mark. The decline was exacerbated by widening net losses and heightened competition, resulting in one mining stock plummeting nearly 30% in a single trading day. Meanwhile, the index that tracks Bitcoin mining stocks fell to its lowest point since September 2024.
Cipher Mining Inc. (NASDAQ: CIFR) witnessed a drop in shares despite announcing net earnings of $18 million for its fourth quarter. While its adjusted earnings reached $51 million, investors expressed concern over long-term profitability amidst the fluctuating Bitcoin prices. Tyler Page, CEO of Cipher Mining, remarked on their productive fourth quarter and increased hashrate, though the net loss widened to nearly $45 million from just under $26 million the previous year.
Bitdeer Technologies Group (NASDAQ: BTDR), another major player, reported a staggering net loss of $599.2 million for 2024, a sharp rise from a loss of $56.7 million the prior year. Their total revenue saw a slight decline to $349.8 million from $368.5 million. Chief Business Officer Matt Kong commented, “Last year, we strategically prioritized resources to the development of our proprietary ASIC technology, which temporarily limited our hashrate growth and impacted our financial performance.”
The overall investor reaction was negative, with Bitdeer shares plunging 29% to close at $9.26, marking a three-month low. Cipher Mining also fell over 17% to $4.10, representing a four-month low. The largest publicly traded miner, Marathon Digital Holdings (NASDAQ: MARA), saw a decline of 11% to $12.42, its lowest since November 2023. Other significant losses were noted in Canaan (NASDAQ: CAN) and IREN (NASDAQ: IREN).
The adverse sentiment in the market was further fueled by Bitcoin’s drastic two-day descent, with prices testing levels around $86,000—the lowest seen since November. Additionally, the Bitcoin Mining Stock Index from Hashrate recorded a steep drop, indicating difficulties within the sector. Riot Platforms (NASDAQ: RIOT), despite posting impressive record revenue and net income figures, faced a downturn due to Bitcoin’s performance, underscoring a trend where mining stocks are perceived as indirect investments in Bitcoin.
In summary, the substantial declines in Bitcoin mining stocks are primarily attributed to the falling price of Bitcoin and worsening financial results among sector players. While some companies reported earnings, investor focus remains predominantly on Bitcoin’s price fluctuations, highlighting the sector’s vulnerability to the cryptocurrency market. The situation underscores a challenging landscape for Bitcoin miners, who are grappling with both competition and profitability issues.
Original Source: www.tradingview.com
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